Argentina Gains Financing to Expand Gas Pipelines

Argentina has secured $150 million in financing from CAF, a multilateral development bank in Latin America, to expand its natural gas transport capacity andconnect more homes to the country’s gas gridin hopes ofreducing consumption of more expensivealternatives, such as liquid petroleum gas.

With the financing,the country will proceed with expanding the backbone pipelines in the north and south of the country, and increasing the delivery potential of a line that brings in supplies from Bolivia.

Argentina will need more pipeline capacity as production recovers from a 10-year low of 4 MMcf/d in 2014 and aseries of new projects to develop Vaca Muerta, the country’s biggest shale play, brings more gas supplies to market. According to the country’s government,gas production, which currently meets 50% ofnational energy needs, should reach 6.5 MMcf/d in 2025.

In May, the government called a tender for projects to expand three pipelines, with spending estimated at $168 million.

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